Green Growth Brands (CSE: GGB) announced today that they are expanding into a third U.S. state as it seeks to see it’s stock price rise enough to justify their hostile takeover offer to Aphria Inc (TSE: APHA)(NYSE: APHA). In particular, GGB revealed that they paid $12.3 million to acquire Arizona Natural Pain Solutions (also known as “Desert Rose”), which is one of the few companies that holds a license to operate in Arizona, including retail, packaging, and cultivation operations.
“We were very impressed with the quality of the operations held by Arizona Natural Pain Solutions. At Desert Rose, the team is dedicated to providing their customers with medical marijuana products that are pure, safe, and efficient while striving to keep their costs as affordable as possible,” said Green Growth Brand CEO Peter Horvath. “This strategy fits perfectly with our plans to grow the world’s premier cannabis retailing business. The retail operations at Desert Rose fits our stated strategy of favoring large sales volume with high-productivity assets. Our vision of Green Growth Brands is to be a multi-state operator with stores averaging USD$15 million to USD$20 million in annual sales, driven by per square foot sales in excess of USD$10,000. This is what our first assets in Nevada and this store in Arizona have achieved.”
Desert Rose was founded back in August 2016 and now serves over 400 patients a day, providing medical cannabis products such as concentrates, edibles, tinctures, vape pens, etc. Additionally, the company has plenty of strong reviews as well as its own reward program.
Arizona currently restricts cannabis use to only medical purposes, but many expect that the state could be one of the next few to legalize recreational use in the near future. The state currently has around 186,000 registered medical marijuana patients with over 122,000 pounds of cannabis sold over 2018 – a 41 percent increase as opposed to the previous year.
Last week Green Growth Brands announced that they had presented a formal public offer to take over Aphria Inc. In response, Aphria’s management team cautioned shareholders on embracing the offer, saying at the time “we are also determined to protect Aphria shareholders from opportunistic offers that fail to reflect the substantial value and growth prospects we have built at Aphria.” Before such an offer can become a reality, however, Green Growth Brands needs to see it’s share price increase sufficiently to levels mentioned in the takeover offer. As such, many of these additional developments, such as this expansion into Arizona, also serve the additional purpose of propping up the company enough to make a legitimate takeover bid.
In response to the news, Green Growth Brands share price jumped up 5.15 percent today. The Dow Jones in comparison lost only 15 points, essentially staying the same.
Green Growth Bands Company Profile
Green Growth Brands expects to dominate the cannabis and CBD market with a portfolio of emotion-driven brands that people love. Led by renowned retailer Peter Horvath, the GGB team is full of retail renegades with decades of experience building successful brands. – Green Growth Brands
